The Obama Administration announced last week that workers who are eligible to continue health insurance coverage through COBRA (Consolidated Omnibus Budget Reconciliation Act), will now have the option of purchasing a plan through the Health Insurance Marketplace without having to wait until open enrollment.
In many cases, workers will be able to save a significant amount of money by opting to buy a plan through the Exchange after leaving a job, rather than continuing with the employer’s plan through COBRA. Workers and their families must be notified of their COBRA option at the start of employment, and now they must be given information on more affordable options available through the Exchange as well.
In addition, if a person’s COBRA coverage expires outside of Marketplace open enrollment, they would qualify for a special enrollment period and potentially be eligible for credits and subsidies. However, if they voluntarily drop COBRA outside of Marketplace open enrollment, they must wait until the next open enrollment to purchase a plan and find out if they are eligible for any credits and subsidies.
If you would like more information on the Exchange, please request it here.
